RIBO – Habitational Questions and Answers Rated A

RIBO – Habitational Questions and Answers Rated A Is the following statements found in the Homeowner/Tenant/Condo policy is correct: The insured may have the option of a "replacement cost" basis settlement on his building(s) as long as it is on the same location and is done within a reasonable time, but the insured may be penalized in the amount of the settlement if the insured's building is insured for less than 80% of its value. Correct In the case of a tenant package policy "Dwelling" means what? the portion of the building occupied by the insured as a private residence. With respect to Homeowner/Tenant/condo policy: There is automatic protection for additional living expense, if an insured peril occurs making the premises unfit for occupancy, the indemnity period for this protection being limited to two weeks. T or F True Losses or increased cost of repairs due to operation of any zoning, demolition, repair or construction law Are not insure, but various building by-laws endorsements are available, at an additional premium, which may provide the insured with additional coverage to bring his building into compliance with the by-law requirements. A member of the insured's family, properly insured by a tenant package policy, was found to be negligent and legally liable due to a carelessly handled cigarette, which caused injuries and property damage to a third party and their apartment building. It also caused fire damage to the portion of the building occupied by the insured. Which sections of the legal liability would pay these claims? Tenants legal liability and personal/premises liability. The general purpose of the liability coverage section is to give the insured protection for Injuries caused to others when the insured is negligent and held legally liable. A tenant in an apartment building negligently ignores repairing a slow leak to his waterbed. One day the waterbed burst out and damaged the building and apartment below. His tenant's insurance would cover. The legal liability for both the damage to the building and the damage to the tenant below. Your insured is driving his 50hp inboard/outboard watercraft and accidentally backs into an inflatable lifeboat. The propeller from the insured's boat cuts through the lifeboat and knocks the stem off a driver's air tank. The air tank acting like a missile takes off through the water and smashes through the hull of a nearby 40 foot cabin cruiser. The cruiser sinks quickly and all 5 members on board have drowned. Your insured's policy: Covers liability up to the limits of the insured's policy. Suppose the insured was keeping a shotgun for a friend who had moved out of the country. The insured's nine year old son saw this and thought he would play with it when his dad was at work. He pulled the trigger and the gun fired blowing apart the outdoor barbecue and killing the neighbour's wife, he also injured himself. What would be covered? The barbecue and damages to the wife are covered. Perils under a homeowner policy which are non-standard and could be endorsed are: Earthquake. REMEMBER: A mortgagor is similar to a lessee A mortgagor is similar to a lessee Your insured is a tenant and has purchased a tenants package policy for $32,000 with a $500 deductible. Would this include the locker in the basement Premises would include the locker in the basement. When an insurer cancels, they must Comply with the statutory conditions of the policy. A neighbouring tree damages your house when it falls during a storm. Your insurer Pays the claim subject to your deductible. There are differed basis of settlement, they are: Stated amount, ACV and replacement cost The raging fire burns a properly insured home to the ground. The limit of the policy is $175,000, which reflected the full cost of current replacement for the home. The insured immediately begins construction of a new home on the vacant land he had in the country. The insurer: Pays the ACV of the house less the deductible Your client will be keeping half of her contents in a storage warehouse as she finds her condominium too cluttered. You advise her: Personal property stored in a controlled access storage facility is only insured for 30 days from the date that the property is first put in storage, unless the loss is caused by theft. Improvements and betterments under a condo policy are Are covered for any amount that has been specified in the declarations. Your insured owns a seasonal dwelling and is insured on that form. Then have $60,000 on the cottage. Located near the water are two buildings: a boathouse $10,000 and storage shed $2,000. There was no additional insurance purchased. One weekend, a windstorm blew the boathouse into the lake. How much will the insurer pay under the policy? $6,000 Your client has moved to the country as he could buy more houses for the money there. He started growing turnips for fun and now sells them at the roadside. He is doing this full time and could make close to $45,000 this year. A person recently sued him for getting sick on a turnip that had been purchased from the insured. He has a homeowner's policy, which you sold him for $150,000 and $1,000,000 liability. This claim would not be covered. The insured's cottage door is left open and someone steals all the contents, how would the policy respond? Theft is not covered The insured is planning on renovation job. He has $500 dollars worth of material at his house and $300 at his father's house. If his father's house burns down, destroying the material, how much will the insured get back? Nothing. A coverage on or adjacent. If a tenant signs a waiver stating that the landlord will not be liable for any damages, and it was later discovered the fire was caused by the landlord. How would the tenant's policy respond? Will pay claim and subrogate against the landlord. Upon the investigation of a claim, it was discovered that someone set fire to the house and the insurer wants to get off risk ASAP. 5 days if hand deliver with return of unearned premium Your insured was spray painting his garage door and along came a windstorm which blew paint all over. What is covered under Section Two? Paint to neighbours door Under Section II Liability, there is automatic extension from all but one Insured residence used as a day care for the neighbor's kids If a customer wanted to insure theft under seasonal dwelling. You tell them: Burglary can be purchased, theft is not included. Your insured current renting in a condo and has a RIBO Tenant policy. She is looking too buy a condo townhouse. How would you respond? Re-write the risk as you are not insured for the unit. What would affect the amount of premium to be charged? The deductible. Person A has insured his house for $300,000, he sells $100,000 each to person B and C. Person B&C do not call their insurance company. There is a total loss. How much will A receive? $100 000 A Lessor is: One who rents out to tenants. (like a dealership for cars) What situation may have effect on premium charged for homeowner comprehensive policy? The house is unoccupied for 3 months during the winter. Your insured owns a seasonal property, one night a burglar broke into the locked boathouse and steals an old canoe ($500), a 5 H.P outboard motor ($700) and ($250) worth of fishing tackle. The damage to the boathouse will cost ($300) to repair. There is $10,000 insurance on personal property including burglary and robbery subject to a $200 deductible. How much will the insured receive. $1,350. But watercraft limited to 1000+250+300=1550-200=1350 The insured burned his house down with cigarette butt and died. How will his policy respond? Pay loss to insured's estate. What purpose does the Proof of Loss serve? The insured files it to "prove" loss occurred and establishes the value of the property damage. Which of the following Clauses affects the amount of settlement of insured loss? Co-Insurance. (If underinsured will bear a portion of the loss) Which one clause does not affect the amount of settlement an insured would receive as a result of an insured loss? Pro-rata distribution clause A building is valued at $500,000 with a Fire and EC Policy. The insurer stipulates a 90% co-insurance clause will apply on the policy. The building is insured for $300,000. One month after the policy has been issued; they building suffered a theft loss of $100,000. There is a $1,000 deductible. How much will the insurer pay out? $0. Theft is not covered under Fire and EC You are sued when you accidentally drove a 15 foot long boat you are renting while on vacation into another boat. The HP on the boats engine is 50. Is this excluded under the liability section of the RIBO Condo Policy? the following loss is not excluded under the liability section of the RIBO Condominium policy, No exclusion for watercrafts you do not own You intentionally steal property form your neighbor's house and are later sued for damages. This would be covered under: None of the above.